ESAT Telecom is to list on the Dublin Stock Exchange next week, making it the first telecommunications company to get a primary listing on the exchange. Esat chairman Mr Denis O'Brien said the move would make it easier for Irish institutions and retail investors to "participate in Esat's future growth".
Mr O'Brien was adamant that Esat would remain the second telecommunications company in the Republic, despite the pending entry of giant US cable group NTL which has bought Cablelink. He said the corporate sector would remain Esat's primary focus.
"The business market is a £500 million (€635 million) market and it is growing exponentially," he added.
He said EsatClear, the company's residential offering, was ahead of the "ambitious targets" which it had set when it was established and figures would be published shortly.
Mr O'Brien denied reports that Global Crossing, a US cable group, was interested in buying his company. "Esat Telecom is not for sale," he said. He added there were no plans to float off Esat Digifone, the highly successful mobile phone operator in which the company has a 49.5 per cent stake. However, such a decision would be up to the Digifone board.
Mr O'Brien made his remarks at the company's a.g.m. in Dublin yesterday. He told shareholders that Esat had met all its targets to date, but that it would lose "significant amounts of money this year". But it should be EBITA (earnings before interest, tax and depreciation) positive by the third quarter of next year.
The company's accounts show that Communicorp, a holding company controlled by Mr O'Brien, was paid £1.15 million last year in management and service fees, compared to £897,000 in 1997. Fees of £60,811 were payable to LF Buckley & Associates whose principal is Mr Leslie Buckley, a director of Esat. This compares to £341,000 paid to his company the previous year.
Connolly Corporate Finance, whose principal Mr Paul Connolly is also an Esat director, was due fees of £505,000 at the end of 1998, according to the report. This compares to £270,000 the previous year.
Esat has also entered into a senior debt facility for £150 million with Toronto Dominion Bank Europe, Dresdner Bank, (London Branch) in association with Paribas London and the Export Development Corporation of Canada. The rate varies, but is running at around 5.5 per cent. Mr O'Brien said it represented a vote of confidence in the company by the banking community.
The monies will be used for further roll-out of the network. Esat is spending £95 million on infrastructure this year.
